Another crisis coming
I do enjoy reading the occasional Letters to the Editor from local financial pundit Mr Steven Lawrence. He presents a radically different opinion on financial matters, yet his views and letters never seem to attract any comment or criticism, least of all from mainstream financiers.
Now in today’s TDN (16 April), on the front page we have an article over the petty expense of $22,000 for legal advice on the proposed disposal/sale of $35,000,000 of grossly over-valued Council Asset (Golf course land), while tucked away in the middle of the same paper, on page 10, in the business section, is a shortened report on internationallyrecognised financial adviser Ann Pettifor and the rapidly looming Global Financial Crisis #2.
And for those who missed the article, or were not aware of the impending international financial dilemma the world faces: Since the Global Financial Crisis #1 back in 2009, international debt has spiralled from 125 per cent of Global Domestic Production to now sit at over 400 per cent of GDP!
All based on cheap international bank supplied credit, secured against spuriously overvalued assets (Land) and ballooning corporate (Council) debt.
De´ja` vu Mr Lawrence?
All Hail to China, the repository of the lion’s share of the Western World’s trade imbalance.